The Importance of Modern Grids for the Transition to a Green Energy Era

Article of Kostas Horinos,  Executive Director, M Power Projects, METLEN Energy & Metals, in worldenergynews.gr

The decision for a green energy transition is a global one. Agreements such as the Paris Agreement that aim to limit global temperature increases to below 2°C, are towards that direction. This transition is essential for securing a sustainable and safe future for all and at its core are of course renewable energy sources  (RES). However, RES’ effective utilization largely depends on the existence of robust and efficient network infrastructure - grids.

Grids are the backbone of the energy system, facilitating the transmission and distribution of electricity. With the growing penetration of renewable energy, the need for advanced grid technologies and infrastructure investments becomes increasingly urgent. Today’s grids must adapt to the variable nature of energy production, ensuring reliable and secure energy supply. They must be flexible, enabling the storage of surplus energy and its reuse when needed, thereby ensuring stability in electricity supply. Integrating technologies such as network management systems and smart grids can help balance supply and demand in real time. In this way, RES, combined with storage and improved grids, can effectively meet the energy needs of a sustainable economy.

A significant challenge is the modernization of existing grids - both in terms of equipment and technolog - to increase capacity and reduce energy losses, and to achieve efficiency and reliability. Comprehensive investments will play a crucial role in addressing major challenges ahead:

• Rising Energy Demand: As energy consumption increases with population growth and the development of new technologies—such as the construction of data centers—energy demand continues to rise. Modern grids must handle this increased demand.
• Integration of Renewable Energy Sources: Renewable energy sources, such as solar and wind, are characterized by variability and intermittent production. These characteristics demand the development of flexible and smart grids in order to manage fluctuations in energy production and consumption.
• Security and Reliability: Aging grids are more prone to failures and outages due to limited technological capabilities and outdated infrastructure. Modernizing them will improve the reliability and security of energy supply.
• Reducing Energy Losses: Modern grids, utilizing advanced materials and smart technologies, are more efficient and can reduce energy losses during transmission and distribution.
• Supporting New Technologies: The development of new technologies, such as electric vehicles or smart homes, requires more energy and thus smarter grids that would be capable of supporting these innovations.

Global Investments in Grids: A Key Challenge

Governments worldwide, including EU member states, have recognized the need for grids investments. And this is why annual investments in transmission and distribution grids are expected to multiply in the coming years. Globally, investments in electricity grids are projected to reach $820 billion annually by 2030. In the U.S., investments are expected to reach €650 billion, with India following at €507 billion for the 2025-2034 period. In the European Union, investments in energy infrastructure, including grids, are estimated at around €545 billion for 2021-2027, creating 1.3 million jobs in the EU during this period.

In Europe specifically, for the 2025-2034 period, Germany is expected to invest over €230 billion, France at least €170 billion, the UK over €160 billion, and Spain over €90 billion. Greece must take action and make investments to become a leader in a well-connected energy market and benefit from the advantages offered by the current energy landscape.

It is worth noting that investments are not the only challenge. The increasing need for new grids has driven global demand for such projects, putting pressure on the supply chain and the skilled workforce needed to implement them. In this context, demand for EPC (Engineering, Procurement, and Construction) projects has risen, an area where METLEN has emerged as a global leader.

METLEN’s Contribution to Grids

METLEN Energy & Metals, at the forefront of energy innovation, has strategically invested in grid infrastructure projects both in Greece and abroad. With a track record of approximately 300 grid-related projects, the company has a strong presence in Greece and countries such as the UK, Romania, Spain, Chile, Italy, and others among the 40 countries it operates in.

Landmark projects like the supply and construction of 400kV overhead lines in Komotini and Corinth are just some examples of its contribution to enhancing high-voltage networks. The high-voltage Greece-Bulgaria interconnection strengthens the region’s energy security and facilitates the integration of renewable energy sources. Additionally, the Eastern Green Link 1 project in the UK is a pioneering initiative connecting large-scale energy resources with modern grids. In collaboration with GE Vernova, the project includes constructing the terminals for an HVDC (high-voltage direct current) subsea cable linking Scotland and England, significantly enhancing the UK’s energy infrastructure and supporting the integration of renewable energy from North Sea wind parks.

The transition to a green energy economy is incomplete without modern, resilient grids. They are essential for ensuring a stable, affordable, and sustainable energy supply. METLEN is committed to leading this effort by investing in technologies and projects that will transform the energy landscape for decades to come.